Pre Market Report, Jan 27, 2021 | Stocks and Commodities

 Jan 27, 2021

Time: 8 am

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Pre Market Report:

1. Both on Friday and Monday, both FIIs and DIIs were net sellers in Cash market.
2. Some informed people shorted future, bought Puts and Sold Calls.
3. Yesterday Global cues were not good, SGX Nifty hit a low of 14014.
4. Farmers protest turning violent in Delhi was also one of the resons for such a panic fall in SGX Nifty.
5. Over night, US markets were marginally lower.
6. But after market, Microsoft is up by 6%, due to good results.
7. Today is very important day for US markets.
8. Today Fed meeting will end, policy announcement will be there.
9. Though Fed is expected to maintain Dovish stand, people will keenly be watching Fed Chair Jerome Powel's comment.
10. Apple, Facebook, Tesla are set to declare results today.
11. Apple, Tesla, Facebook, Microft are 4 of the top 6 companies in US.
12. SGX Nifty is trading around 14120.
13. Retail people will go short now, to reward the smart people who took short positions last Thursday and Friday.
14. Usually this kind of ferrocious fall will result Nifty expiring at the lowest point of the series.
15. But Fed policy, US corporate results, corporate results here in India, etc may make markets more volatile.
16. HUL, Axis Bank, Bank of Baroda are key results awaited today but all 3 are likely to declare results after market hours.
17. So tomorrows market is all the more important.
18. L&T will be in focus after its results.
19. Reliance was the party spoiler on Monday.
20. That one will also be in focus.
21. Nifty monthly candle is likely to form a "Doji" pattern.
22. That will make Budget more interesting.
23. IMF has upgraded Global groth as well as India growth.
24. But SGX Nifty is very volatile, yesterday hit a low of 14014, today morning above 14200, now 14120.
25. Reliance, Infy and Kotak Bank, all index heavy weights fell on Monday.
26. IT index was the worst performer.
27. Markets are likely to stabilise after this big gap down.
28. We need to watch the first 45 minutes low.
29. We can expect some recovery, some short covering as long as that first 45 minutes low is not broken.
30. Markets are not reacting to good news, NBFCs fell despite the good news that CRR and SLR will not be applicable to NBFCs.
31. We need to see whether this gap down of more than 100 points, nearly 400 points lower than Monday's high, will trigger profit booking by short sellers or not.
32. Nifty is likely ot be highly volatile, may trade between 14020 and 14280.